Riverstone Credit Opportunities Income proposes sub-manager arrangement
Breakwall is a newly formed independent asset management firm expected to be regulated by the SEC as a registered investment advisor, owned and operated by the existing Riverstone Credit Partners team.
In a stock exchange notice today (6 November), the board said Riverstone had announced its intention to enter into an agreement with Breakwall Capital to provide sub-management services for all credit vehicles managed by Riverstone, including RCOI, from 1 January.
Breakwall is a newly formed independent asset management firm expected to be regulated by the US Securities and Exchange Commission as a registered investment advisor, owned and operated by the existing Riverstone Credit Partners team.
Under the proposed terms, Riverstone will remain the manager of RCOI. The ongoing management of the trust, including the day-to-day investment team, will stay the same, and fees will not be increased as a result, the board said.
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«The board of RCOI has been involved in the discussions leading up to this announcement and are confident that the intended structure of Riverstone as manager and Breakwall as the future sub-manager will continue to deliver strong returns for shareholders,» it said.
«In light of the end of the investment period for Riverstone Credit Partners II in December 2023 and the upcoming realisation election for the company on or around the date of its annual general meeting, the board will communicate next steps in due course.»
In a research note, Stifel analyst Sachin Saggar said this appeared to be a spin out of the credit team from the wider Riverstone Investment Group.
«On the face of it, it seems like an attempt to
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